Contractors using Ltd Companies or Umbrella Companies are likely to come under fire shortly with HMRC's move to draft in over 2,000 extra revenue collection inspectors in a bid to maximise revenue. The HMRC have signalled their intention to investigate the widely-abused dispensation model used by many Umbrella Companies in the coming months as well as look closely at the way some Ltd Companies have been formulated with regard to expenses and the misuse of National Minimum Wage resulting in the payment of dividends. Alex Ward of Bedouin, specialists in contractor tax and payroll solutions, comments: "Many contractors using a Ltd Company would fail the IR35 test if investigated and HMRC's average yield per case has recently leapt by 100%. Not only would this see a bill for Tax and NI on gross contract value as if it were income under the transfer of debt provision, it could also encourage a further claim under AWR". Bedouin assist contractors to look after their tax and NI, cover all insurances and remove the need for an accountant or to collate and record expenses while still ensuring the maximum net retention of your contract value, generally 83-84%. For further details of Bedouin's contractor tax and payroll solutions, simplyclickonthis link or contact Alex at alex.ward@bedouingroup.com or on 07538 000417.